DA Hike Announcement: 4 percent increase in DA may be announced. However, the final decision is subject to the approval of the government. If the government decides to increase DA by 4 percent, it will increase from the current 42 percent to 46 percent.
DA Hike Announcement: The Central Government is soon preparing to announce an increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners under the 7th Pay Commission. According to several media reports, initial expectations of announcing the DA hike were placed before Dussehra, but recent reports suggest that the government may make a big announcement for central employees before the festival of Diwali.
If reports are to be believed, a 4 percent increase in DA may be announced. However, the final decision is subject to the approval of the government. If the government decides to increase DA by 4 percent, it will increase from the current 42 percent to 46 percent. However, there is also a possibility that the government will increase DA by 3 percent, taking it to 45 percent.
Crores of people will benefit.
The increase in DA etc. will be effective from July 1, 2023. This will increase the salary for the month of November. Along with this, the dues for the period from July to October will also be given. This announcement is likely to benefit 47 lakh employees and 68 lakh pensioners.
What is DA and DR?
Dearness Allowance (DA) is a cost-of-living adjustment allowance provided by the government to public sector employees, while Dearness Relief (DR) is also similar and benefits central government pensioners.
The government revises the DA/DR rate every six months to counter the effects of inflation. DA is calculated as a percentage of basic pay.
How much will the salary increase?
For those with minimum basic salary of Rs 18,000, the existing 42 per cent DA provides a monthly increase of Rs 7,560. If DA is increased by 4 percent to 46 percent, the monthly increase will be Rs 8,280. In such a situation, employees with this basic salary can expect an annual salary increase of Rs 8,640.
Meanwhile, individuals with a maximum basic salary of Rs 56,900 currently get the benefit of 42 per cent DA, which adds Rs 23,898 to their monthly earnings. After the 46 percent increase in DA, this monthly increase is expected to increase to Rs 26,174. Therefore, those with higher basic pay can expect an annual salary increase of Rs 27,312.
